ED Attaches ₹14 Cr Assets In HashPe Crypto Ponzi Fraud Case

The Enforcement Directorate (ED), Chennai, has provisionally attached movable and immovable assets worth approximately ₹14.2 Cr in connection with an alleged cryptocurrency investment fraud operated by Pan India Cryptocurrency, HashPe.

The attachment was made on October 30, 2026, under the Prevention of Money Laundering Act (PMLA), 2002. The ED has also filed a prosecution complaint before the Special Court (PMLA), Puducherry.

According to the ED, Hashpay allegedly operated a fraudulent cryptocurrency-based ponzi investment scheme that lured investors with promises of daily returns of 1%, returns of up to 3X the invested amount, referral commissions and rewards such as luxury cars and foreign trips.

The agency said the attached assets include immovable properties in Tamil Nadu, Haryana and New Delhi, a BMW car and funds deposited in bank accounts.

The investigation was initiated based on an FIR registered by the Cyber Crime Police Station, Puducherry, under the Bharatiya Nyaya Sanhita (BNS), 2023, and the Information Technology Act, 2000.

How The Ponzi Scheme Worked

ED’s investigation found that HashPe operated through a website, hashpe.io, and a multi-level marketing network. Its promoters allegedly used cash payments, bank transfers and cryptocurrency transactions to mobilise investments from the public.

The scheme reportedly used USDT (Tether), a stablecoin, and Bitcoin to facilitate transactions. However, the agency found that the purported trading activities were not backed by actual cryptocurrency trading.

Instead, money collected from new investors was allegedly used to repay earlier investors and pay commissions to agents. Withdrawals were eventually stopped and the platform was frozen, leaving investors with financial losses.

The ED further found that the promoters allegedly created fictitious cryptocurrency tokens, including TCX and HashPe, at an almost zero acquisition cost and assigned artificial values to them. The platform displayed profits to investors despite the absence of genuine cryptocurrency trading activity to generate the promised returns.

To attract investors, the promoters used celebrity endorsements, promotional events featuring luxury cars and gold, and foreign cruises to build credibility. They also established a multi-level marketing network, with agents designated as ‘Leaders’ receiving commissions for bringing in new investors. 

The ED said approximately ₹112.91 Cr was collected through the scheme, a portion of which was returned to investors. The remaining funds were transferred to bank accounts of ‘HIFY Circle’ and other related entities before being converted into cryptocurrency.

The proceeds were allegedly diverted towards personal expenses, loan repayments, hefty commissions and promotional activities, among other purposes.

The agency has identified approximately ₹49.54 Cr as proceeds of crime in the case.

The development comes after the ED conducted search operations at premises linked to HashPe, its promoters and associates on September 1. 

Following the searches, four individuals namely Imran Basha, Hitesh Kumar, Syed Usman alias Babu, and Dharmendra were arrested under Section 19 of the PMLA, 2002. All four accused are currently in judicial custody while the investigation is ongoing. 

The investigation revealed that Usman handled large cash investments and operated the HIFY Circle bank account, while Dhamodharan managed HashPe’s software, database and cryptocurrency operations, including its wallet functions. 

Heightened Crypto Crackdowns

Branches of ED across the country have stepped up the heat on suspected illegal cryptocurrency activities in recent months. On November 7, the ED in Bengaluru conducted searches at premises linked to crypto exchanges CoinDCX and Delta Exchange India (DEI) over alleged unauthorised cross-border transactions involving crypto derivatives and tokenised foreign stocks.

It had earlier conducted similar searches on October 29 at premises links to  crypto platforms Mudrex and Saber.money, as well as decentralised finance (DeFi) protocol Instadapp and its associated platform Fluid, over alleged unauthorised cross-border fund transfers worth more than ₹4,940 Cr.

Prior to this in June this year, the ED had also searched six premises linked to five platforms, namely Transak, Carret, Xpat, Onramp.money and Onmeta, over alleged unauthorised cross-border crypto transfers.

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